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Metal stocks in demand after positive economic data in China

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Capital Market
Last Updated : Jan 05 2017 | 3:47 PM IST

Shares of ten metal and mining companies gained 0.71% to 6.35% at 14:00 IST on BSE after a private survey showed that activity in China's service sector expanded at a faster pace in December.

Meanwhile, the S&P BSE Sensex was up 261.51 points or 0.98% at 26,894.64.

Hindustan Copper (up 2.65%), JSW Steel (up 6.35%), Hindustan Zinc (up 2.45%), Vedanta (up 4.75%), Steel Authority of India (up 2.97%), Tata Steel (up 4.2%), Hindalco Industries (up 1.98%), Jindal Steel & Power (up 6.11%), Bhushan Steel (up 1.93%) and NMDC (up 0.71%), edged higher. National Aluminium Company declined 0.08%.

The BSE Metal index had underperformed the market over the past one month till 4 January 2017, falling 0.43% compared with Sensex's 1.53% gains. The stock had, however, outperformed the market in past one quarter, gaining 2.49% as against Sensex's 6% decline.

Activity in China's service sector expanded at a faster pace in December, a private gauge showed today, 5 January 2017, adding to recent signs of firmness in China's economy. The Caixin China services purchasing managers' index rose to 53.4 in December from 53.1 in November, Caixin Media Co. and research firm Markit said. A reading above 50 indicates a month-to-month expansion, while a reading below that points to a contraction.

The rise in the private gauge came despite a decline in an official measure of activity outside the factory sector. China's official nonmanufacturing PMI, which includes the construction sector, edged down to 54.5 in December from 54.7 in November, the National Bureau of Statistics said last weekend.

China is the world's largest consumer of steel, copper and aluminum.

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Meanwhile, Hong Kong's PMI moved back into growth territory for the first time in nearly two years in December.

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First Published: Jan 05 2017 | 2:03 PM IST

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